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Detroit budget office reports early surplus, but flags potential income-tax shortfall

Detroit City Council — Budget, Finance and Audit Standing Committee · November 19, 2025
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Summary

City budget staff told the Budget, Finance and Audit committee that first-quarter numbers show a year-to-date surplus and a $10 million allocation for a supplemental retiree payment, but officials cautioned an annualized municipal income-tax shortfall could be substantial and that it is too early to draw firm conclusions.

Detroit budget officials presented the city’s financial report for the three months ended Sept. 30, 2025, saying year-to-date figures show a positive surplus but urging caution about revenue projections.

Budget director Donnie Johnson told the Budget, Finance and Audit committee that the city has allocated $10 million in the FY26 budget for a supplemental retiree payment commonly referred to as a "thirteenth check," and that distributions for eligible retirees and beneficiaries are expected to begin Dec. 1. Johnson said the administration currently projects a sizable variance on municipal income taxes and cautioned the city is…

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